Goodwill and Intangible Assets (Notes)

3 Months Ended

May 04, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9 — GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill allocated to Dell's business segments as of May 4, 2012, and February 3, 2012, and changes in the carrying amount of goodwill for the three months ended May 4, 2012, were as follows:



	Large Enterprise		Public		Small and Medium Business		Consumer		Total
	(in millions)
Balance at February 3, 2012	$	2,222	$	2,547	$	759	$	310	$	5,838
Goodwill acquired during the period	57		56		46		—		159
Adjustments	3		2		3		—		8
Balance at May 4, 2012	$	2,282	$	2,605	$	808	$	310	$	6,005

Goodwill is tested for impairment on an annual basis during the second fiscal quarter, or sooner if an indicator of impairment occurs. Based on the results of the annual impairment test, no impairment of goodwill existed at July 30, 2011. Further, no triggering events have transpired since July 30, 2011 that would indicate a potential impairment of goodwill as of May 4, 2012. Dell did not have any accumulated goodwill impairment charges as of May 4, 2012.

Intangible Assets

Dell's intangible assets associated with completed acquisitions at May 4, 2012, and February 3, 2012, were as follows:



	May 4, 2012							February 3, 2012
	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net
	(in millions)
Customer relationships	$	1,592	$	(552	)	$	1,040	$	1,569	$	(506	)	$	1,063
Technology	1,183		(548		)	635		1,156		(490		)	666
Non-compete agreements	71		(45		)	26		70		(42		)	28
Tradenames	84		(44		)	40		81		(41		)	40
Amortizable intangible assets	2,930		(1,189		)	1,741		2,876		(1,079		)	1,797
In-process research and development	34		—			34		34		—			34
Indefinite lived intangible assets	26		—			26		26		—			26
Total intangible assets	$	2,990	$	(1,189	)	$	1,801	$	2,936	$	(1,079	)	$	1,857

Amortization expense related to finite-lived intangible assets was approximately $110 million and $92 million for the three months ended May 4, 2012, and April 29, 2011, respectively. There were no material impairment charges related to intangible assets for the three months ended May 4, 2012, and April 29, 2011.

Estimated future annual pre-tax amortization expense of finite-lived intangible assets as of May 4, 2012, over the next five fiscal years and thereafter is as follows:



Fiscal Years	(in millions)
2013 (remaining nine months)	$	299
2014	376
2015	283
2016	237
2017	195
Thereafter	351
Total	$	1,741

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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